Refined olive oil sees successive price rises
The olive oil market seems to be experiencing significant turbulence, particularly in the refined olive oil sector and extra virgin olive oil:
- Price Increases: Retail prices of refined olive oil have been steadily increasing in recent weeks due to a supply crisis in the sector. The average price of own-label olive oil (one litre) in the UK’s major supermarkets rose to £7.38 in the week of April 18, marking a 4% increase month on month and a 1% increase week on week. Compared to the same period last year, prices were up by a staggering 42%.
- Supply Shortages: Shortages in the Mediterranean region, exacerbated by extreme drought conditions, have been driving the price increases for well over a year. Initially, the shortage primarily affected the extra virgin olive oil category, but now it’s impacting refined olive oil as well.
- Impact on Retailers: Retailers have been forced to raise prices on refined olive oil more frequently due to shortages of lampante grade oil, which is used in its production. As a result, the price gap between extra virgin olive oil and refined olive oil has narrowed significantly, with refined oil now being priced only slightly below the extra virgin variety across major grocers.
- Consumer Response: The sharp price increases are leading consumers to shift away from the refined olive oil category, opting for alternatives such as sunflower and vegetable oil instead. While extra virgin olive oil consumption remains relatively stable, overall olive oil household penetration has declined.
- Market Outlook: The article also mentions that vegetable oil prices are expected to rise due to reduced UK production of oilseed rape caused by extreme flooding. This further adds to the challenges faced by consumers and retailers in the cooking oil market.
In AceitedelCampo we believe that high quality extra virgin olive oil has its price, however we hope that the current volatility will finally stop.
Source: thegrocer.co.uk/buying-and-supplying/refined-olive-oil-sees-successive-price-rises-as-supply-crisis-grows/690602.article
